Cathie Wood’s Ark Invest bought about $52.1 million in SpaceX stock, bringing its investment since June’s IPO to more than $475 million, as the stock fell below its $135 offering price.
Ark bought stocks through its ARKK, ARKQ, ARKW and ARKX exchange-traded funds during the week ending July 10, according to Ark Invest Tracker. The purchase followed SpaceX’s approximately $444 million purchase around its June 12 market debut.
Wood’s latest move comes after SpaceX lost much of its early IPO profits. According to Yahoo Finance, the stock price started at $150 and reached $225.64 soon after going public, before closing at $131.11 on Thursday.
At this price, SpaceX is down about 42% from its all-time high and closed below its IPO price of $135 for the first time. On Thursday, the stock’s decline widened to five sessions.
Ark acquisition strengthens long-term belief
Ark’s new buys show that Wood views the decline as an opportunity to expand his position. Still, the investment firm does not provide short-term price predictions related to its latest purchases.
This position also involves valuation and supply risks. According to Reuters, SpaceX’s sales are about 49 times that of Tesla’s, compared to about 15 times that of Tesla’s, but the company’s market capitalization has fallen to about $1.8 trillion.
Selling pressure could increase as restrictions on employees and early investors begin to expire in August. Reuters reported that 911.5 million shares could be made available through the initial unlocking after SpaceX’s initial earnings release, but unlocked shareholders would not have to sell.
Bearish traders have already profited from the exit. Short sellers have amassed about $8.7 billion in paper profits since the IPO, with nearly 49% of available shares lent out, according to data from Ortex Technologies cited by Reuters.
SpaceX stock remains stuck in a bearish channel
On the hourly TradingView chart provided, SpaceX stock has remained within a descending channel that has formed through a series of lower highs and lower lows since early July. The latest candlestick traded between $131.01 and $132.89 before closing near $131.07.
Arun’s reading on the chart shows that Arun’s rise is 7.14% while Aroon’s decline is 85.71%, indicating that sellers continue to control the short-term price structure. At the same time, the average directional index reading of 31.22 indicates that the existing trend maintains notable strength.
The channel floor sets up immediate support around $128-$130. Based on the chart structure, $125 could be exposed if we confirm below that area, while the upper boundary of the channel forms the first resistance zone between $133 and $135.
The chart shows that for a stronger recovery, buyers need to reclaim the top of the channel before challenging $140. Until such a breakout occurs, Ark’s latest acquisition will be a vote of confidence from institutional investors, but will not reverse the stock’s bearish technical structure.
